>> ok. thank you so much. we appreciate it erie we will be on the markets once again a little later. "streetsmarts" is next. ♪ green.ks in the now, s&p on track for a positive april. i'm trish regan. "street smart kos quote starts now. now.art" starts ♪ >> welcome to the most important hour of the session. we have 59 minutes until the close. upong up, another taper is us. the fed cuts its bond buying program, crediting consumers for boosting economic activity. how did the central bank explained today's big gdp mess - - miss? mobile domination.

the facebook founder is ready to take your phone to the next level. the key announcement at the facebook developers conference. i want to get to the big three, the stocks we are watching as we head into the close. get earnings. to the two big earnings movers today have to do with tech companies who reported after the close yesterday. twitter big in the news, and at the lowest level since its first day of trading. this all has to do with subscriber both. -- growth. their concerns about flowing -- slowing growth for twitter. ebay, initially it looks good, but the company's sales forecast is a little bit short of estimates. ebay took a $3 billion charge related to repatriation of foreign profits. issue moreen a big

broadly for companies, and it was a bit of a surprise that ebay brought this money back. big deal, this time in the utilities industry. the nation's largest nuclear power provider is making an acquisition. pepco's 20% higher than close yesterday. this will make a big mid-atlantic power company. >> time for the big story. if you thought the fed was worried about economic weakness, you were wrong. the central bank said our economy is gaining momentum. janet yellen thinks it is ok to ease off the easing, cutting back the bond buying program by $10 billion. the weather is getting better, apparently, but data is still weak. cio at pimco is joining us.

and right here on set with me, mike mckee. a big miss. did the economists get it flat out wrong? is janet yellen right? how do you interpret it? >> this was not a really big miss. the data are a collection of actual data the government has and projections. the projections could easily be off, and the government is only guessing at what the trade in inventory figures are for the last month of the quarter. this will be revised three or four times. >> maybe it will look better eventually. >> it probably will. things that were bad in this report are things we have indications are changing. a lead of stories about businesses starting to ramp up their spending into the second quarter. inventory building, it was big in the fourth quarter and small in the first quarter.

you have possibility of a rebound there. there are a lot of things that suggest maybe the fed is right to watch this. we got better than expected adp. adp was rightme is, i don't know when. jeff rosenberg, we are up -- we are up 35 points there, s&p up another quarter of a percentage point. if investors were really worried about this number, they would have eased off. not the case today. our investors seeing something that the gdp reports does not capture? investors are looking past the numbers and realizing this willfed under yellen that be pretty accommodative. what gives her support to be very accommodative and holding

off in raising rates is the low inflation. the core pce came in at one percent year-over-year, the employment cost index is less than two percent. there is no wage inflation. with no wage inflation, that allows the fed to be very patient. and she's inflation, cutting by $10 billion a month. is she being overaggressive here? should we be keeping up, in light of the fact that we get nothing when it comes to inflation, mark? >> i think there's two decisions here. one is the overall size of the balance sheet. in that case, the consensus there is that the cost-benefit is now towards the economy healing. be do not need the fed to buying assets. the tapering is based -- baked into the cake. the second question is what bill gross alluded to in his most recent investment outlook, which is what should be long-term

policy rate be. we think it should be zero percent real or two percent nominal. we see a lower policy rate going forward than the market. it's a function of secular headwinds and the slow inflation we see. >> we have a fed that says it will keep rates low. they will continue on this taper program. you cited adata -- number of more recent reports -- data that really does not support strength in the economy. do you anticipate things will look different three months from now? >> we are going to see a significant rebound in the second quarter, and then it will settle out to a higher level of growth than we had seen going into funny 14. here is something interesting about the fed. isody noticed that the fed

tapering, at least no one has told the bond markets. the 10-year note yield is lower than it was before the fed started tapering. the fed tapering had no effect on the cost of money at this point. adding more to it will not help. >> to what do you attribute that? our investors that worried about the global situation right now? right rate the's global economy is slowing. the u.s. economy is healing, but it's not taking off. we are looking at an economy that will grow maybe at 2.5% real. in a world where the fed maintains short rates low for an extended period, it only gets to a two percent real or two percent nominal. i think that is really what the market is realizing and if that is the case, low interest rates

will also support the healing process in the equity market. >> low interest rates as far as the eye can see. and a market that continues to move higher. and equity market that is up so far this year, was up a time last year. not a lot of economic data to support it. i guess i'm only asking the question, at what point might we see the market start to catch up with economic reality? it looks like economic reality could change. >> the market is what is more likely at this point. we do not know where the markets are going to go. they have plateaued and paused for a while. they have a lot of strategists wondering if this will be a correction we go into. there's no reason to think that earning power of corporations will diminish over the years. >> we have the report coming out on friday.

is that the next thing we will be watching out for? >> ism tomorrow is a pretty good predictor of where the economy is going. we will look at the jobs subcomponent of it. the markets tend to love the payroll report on friday, and it is forecast to be above 200,000, which would give people a reason to believe that things are getting better. mark was just pointing out that we have not seen any wage inflation right now. -- i made a wisecrack about it earlier -- adp coming out better than expected, is that a good sign? jobs reporthat the will be above 200,000? >> we cannot say certainly. last sixve of the months has undercounted what the department of labor comes up with.

if you take that, you're looking based one of 255,000 the bloomberg consensus forecast of 215,000 jobs created. you are still talking about fairly healthy job growth. at this point, adp is a contributor to the feeling that it will be a decent report. intou look pretty deeply housing. what does all of this mean for the housing market? pace of gains will slow. we are still bullish but less bullish. theory rightbest now is building materials. prices, highing single digits, and we think they will see double-digit volume growth because of the remodel cycle. the time is to move out of home builders towards rolling materials. -- building materials. >> we are going to leave it there. thank you very much. coming up, mark zuckerberg takes

center stage. we will find out what he said today. it looks like harsher sanctions are not doing the trick. we will have more on the violence in today's global outlook. ♪

>> provide all the tools you need to bridge these different worlds. we all want identity and sharing across platforms and push notifications across landforms. >> the company announced at its f8 developers conference that it

will offer developers improved tools. a more streamlined experience for people to log into apps and an option to sign in anonymously. with more about how these new features will fuel facebook's mobile strategy, our very own jon erlichman. far.reaction thus an interesting crowd. there are a lot of developers and tech ceo's here. power a lot of the stuff that facebook is doing. the reason that mark zuckerberg and facebook need to cater to developers is because to succeed in the world of mobile phones and tablets, it needs them. facebook on its own is just an app on your phone or tablet. if they are the tool you use to are involved they

in the building of apps, and they can sell the developers on the idea of, we are going to help market your app, plus we can help you make more that mayng dough -- increase the appeal of facebook, and maybe it helps to keep facebook following along with you everywhere you go when you are on your phone. the login is part of that. to keep developers really interested? >> yes. it is one of the biggest announcements they have made. this takes limited inventory that advertisers can go off on facebook and opens it up to the entire mobile web. they have a $30 billion market their. they're going to take about a third of that. $10 billion of incremental volume for facebook. >> explain how it works. i'm an advertiser and i come to facebook. >> they can say, i love to

advertise on facebook, but can you get me on other apps? a news app, gaming app. you can do that today already. facebook brings all the data and information they know about you. it will be one of the two or three players in this space. example ofanother big data, and the power of big data. facebook really trying to capitalize on it. couple ofr this, a years ago, facebook had no advertising tied to mobile. and now it is the dominant source of advertising revenue for them. that was them going public and saying, here is what we can do. we can use targeted information. robert mentioned ad inventory. facebook does not want to get

you angry with too many ads in your feed. targeted only so many ads they will put in front of you. they have reason why to go to the developers. they are out of ad space. if they want to keep growing, they have to lean on these other players who can collectively put in good, targeted ads. their hope is that everyone makes more money. >> this is a $30 billion opportunity? >> yes. there is $3 billiono on targeting. when they started the mobile app installs, it was a new ad unit and took off right away. this could take off right away. what do you think facebook is doing right here that twitter has not managed to do? >> they have made the reach to

the global masses. the euphemism is, is your mom o n facebook? she's probably on facebook. >> my mom is on facebook before i was on facebook. one of the scary things about it,book, if my mom is on chances are the kids are looking for something else entirely. >> that's true. facebook.ot leaving they are adding to their social portfolio. they will not leave facebook. >> this is an opportunity for facebook to capture those younger users. we have seen this through the acquisition of whatsapp, trying to expand and augment their user

base. >> absolutely. they have been very bold in doing those kinds of things. they have not talked a lot about today,p and instagram maybe they can allow these developers to think of themselves as a -- in a position to create the next big app. i think it is a big issue. this idea of having a more anonymous login. facebook has this advantage that long ago they said, we will make it easier for you to grab a new app using your facebook login. facebook said today, we are willing to leave some of that on the table and take some of the information of what is being shared out of the mix so we can continue our reach. >> thank you. coming, ukraine clashes reignite. pro-russian militants seize more government buildings.

will have that story in today's global outlook. ♪

>> proration gunmen seized another city in eastern ukraine. the region are helpless at reining in the militants. with more on how the west will respond -- phil, this is a tense city that militants have made a move on. it does not seem as though the sanctions we are putting on pressure having much effect. >> not much of an affected all.

that's the main concern amongst administration officials and eu officials. the hope was that the sanctions would cause russia to start moving backwards. pro-russian separatists causing trouble in another city on the eastern border. you mentioned the interim president talk about how local security forces are largely helpless. he also noted the ukrainian army is on full alert and awaiting the possibility of invasion. we're going the opposite way of de-escalation. unbelievable. so what is the administration doing now? if you're sanctions are not working, what card can you play? a question they hoped they would not have to work on this soon after their latest round of sanctions were announced. we just returned from the asia trip last night. they expected these sanctions to have more bite.

there are broader sanctions they are working on. questionuestion -- big is not how this impacts the russian government, but how it impacts u.s. companies. take a listen to what jay carney had to say. >> we expect the numbers to be significant in this period towards the end of open we predicted all along there would be a substantial number of people who when faced with the deadline they would enroll. jay was not talking about what we are talking about there -- the underlying point for the administration, they understand if they move to expand the sanctions, the next round of sanctions could hit entire sectors. administration officials are talking to these companies. they do not want to have to face this. >> it is like the bully on the

playground. you give him an inch and he takes a mile. we seem to be getting more and more boxed into this corner. coming up next, we are going to go live to the conference in l.a. ♪

>> now, jenny allen is fighting for diversity. she is standing by at a conference with stephanie role. >> the issue is not inequality but education equality. you're putting out a sterner young people and their are not just there to fill the needs of the country. how do you respond? class in some ways, it is unique. it is a huge system, the

nation's is largest public research facility, a very open door to those who are academically qualified to get in . what i mean is half of the students pay no tuition, another quarter are subsidized. we have a very diverse student body and are working to make it increasingly diverse and a lot of respect. we produce great graduates, scientist, researchers and the like. we have to fight for that everyday. they get jobs. is it worth it? absolutely. but we have is a lack of recognition of the connection and the ultimate ability of the economy to thrive. >> how do you manage -- if half of your students are not pay tuition, how do you keep the train running on the track fiasco -- tracks? tuition dollars go] is

into student may. the students who are paying the to makeunt are helping it affordable for those who do so. >> is that a sustainable long-term? is that a model other universities should have? >> it has lasted for quite a while and is one of the reasons why the university has continued to have 42% of its students first generation, 42% tell grant eligible, which has very low income. so many students who have come from households where english is second-language. that kind of diversity is the arc of history for the country. formodel has been sustained decades. >> i want to talk about guns and gun troll for a moment. georgia, the law will allow guns in schools,

churches, and bars. as a woman who truly understands government, security, and education, what do you think of that? doesn't keep you up at night? >> what gives me a analysis out educate the next generation. i took this job for that reason. to move off of issues of safety and security, which occupy me full-time for so long, and really think about, what is really about six dirty for our country. what do we really need? what we need is a well-educated ready toyoung people go out and use their brain and i will tell you, when i see you and world bank now beginning to rank china above united states as a global economy, to me, that is a call, what are we missing yet so we are missing out on education. >> do you think it is just education? you feel safe and are not concerned about domestic terrorism and cyber security? it has got many people worry that

our fundamental safety is not ok here in this country. and that will come before education. a falsere creating dichotomy. yes, we need absolute safety is dirty and the country. counterterrorism, cyber security, and all the things you mentioned. so much work is being done by so toy people around the clock ensure the safety of the country. we cannot stop there because then we are just playing defense and you have got to go on offense -- the way you gone century in this economy, etc., is focusing on the education of the next generation and the research, the basic research that needs to be done. >> as it relates to the california drought, you recently said the system could use its research capabilities to try to of the bads get out situation. what is the game plan? >> a big drought summit at davis just last week. it brought together a lot of

leaders, at least six of our campuses are doing major work on drought and drought related developmentexample, of drought resistant crops, different ways of managing water , different types of engineering systems, sensor systems, and the like. all kinds of work, starting with the basic research in our labs with our graduates and undergraduates, and moving out to the former on the ground. >> when you think about all of these students that are under the onedership, what is thing you are most worried about for them? they are our future. given the diverse background, you of all the things you've seen. when you look to the next generation, what worries you the most? >> i hope the next generation does not become complacent. i hope they are willing to take up the call and realize the influence we have in the country and the obligation to help the

next generation and to pass it on. you will inspire them. you will inspire me. thank you so much. i will send it back to you. >> great stuff. thank you. thanks to janet. our minimum wage increase stalled in the senate as the president makes another $10 and $.10 an hour push. a it time we give america raise? plus, who will buy the book is? for how much? we will discuss when we continue. we are still waiting for you did. >> billy crystal to take over the clippers? maybe you could be their point guard. ♪

>> president obama the case moments ago and said the public cannot stop him. listen to this. class they dismantle the affordable care act and failed to do anything when it comes to helping who who work hard to get ahead. good news here, it is that republicans in congress do not get the last word on the issue or any issue. you do, the american people. the voters. [applause] >> the gop got the last word for now, stalling a minimum wage hike today in the senate or bill . this is from seven dollars and $.25 an hour to $10 and $.10 an hour. the cbo said the increase may cast as many as 500,000 jobs but would also lift 900,000 people out of poverty. is it time to give america a raise yet for joining me right

now, the bloomberg economics editor and the deutsche bank securities senior research economist and the visiting scholar at the american enterprise institute and former partner at ain't capital. i will start with you, ed. the danger? >> we decided it was much more efficient to use the task that as a way to help the poor. two thirds of four do not work and only 20% of the money transferred through minimum wage ends up in the households of poverty. the cbo says you can transport at four dollars seven, you can get a dollars of the poor income earned tax credit. it takes about seven dollars of income transferred to -- through the minimum wage to get a dollar to families in poverty. you are raising the hurdle for the amount of activity has to be achieved through the job. if you look at the compositional shift, more talented people into the workforce, working mothers, , at aample, and it is higher rate.

and of displacing the least skilled people. >> don't you want talented people in your workforce? >> of course. when you're talking about 500,000 job losses, the losses are even greater for the people at the lowest level of the skill level because they get displaced by higher skilled workers. actually, that is a misreading of what the cbo said and it has been repeated a lot. they did not say 500,000 jobs will be lost with a seven number of aggregate hours that would be the equivalent of 500,000 jobs would not be created. it is not like you're going to go out and fire 500,000 people. the jobs at the low-wage not being created -- >> the idea being if i'm a small-business owner, maybe i will not have as many people work as many hours because it will cost more money out of my pocket. >> if it costs more, the amount of demand decreases. that is basically the argument. >> african-americans under 25 years old, 23% unemployment. is

exactly the place where you would want to create jobs. whether you describe it as, we did not, we could have, or we did not create them, it is kind of semantics as for the difference. we have very high unemployment in the group of people seeking high minimum wage and this will reduce the number of jobs by 500,000. it is more than 500,000 because of compositional shifts in the workforce did you get an increase of people who are more skilled and an even bigger loss of people who are skilled. >> seven dollars and $.25 hour, come on. who will live on that? >> you have a job where you need to drive a car and put gas in the car, basically, -- >> the one issue here is we're are talking about compositional changes in the labor force. an ongoing problem in the economic cycle is labor force participation. if you raise wages, labor force participation increases. it may be uneven between certain demographic groups because

overall, labor slack is a problem now. as we get closer to full employment, this'll be the type of thing that brings marginal workers back. what happens is a small business owner saying i want to pay more because i want the most townspeople in my workforce. and leaving that up to the individuals to decide. >> that brings up an interesting point. there is only about 4 million workers in the u.s. that are making the minimum wage. if you want to pay more for talent, then you certainly have the option. you should not have broad-based price-fixing in the labor market. this is only basically tailoring to the very end. crisis is basically a clinical issue? click it is very popular politically and very bad economic policy. if we are going to attack somebody, would you want to tax wageustomers of minimum establishments like fast food restaurants? they skew younger. those are the people you're

placing the tax on and then you're taxing the money through the worker in a minimum wage. if that is a single mother working year, the$50,000 a cbo estimates the marginal tax it on the worker is between 65 and 95% or it they lose benefits as a result of an increase in pay. you test the poor customer of mcdonald's, you hand the money -- the worker hand the money to the government. who are the richest people in the country? the taxpayers. your taxing poor people and handing money to the rich people. that is how bad the policy is. >> and you write a book called unintended consequences? >> absolutely. with the task ready, we could subsidize all the workers struggling to earn the minimum wage. the problem is not participation with that group. it is unemployment. >> what about how this has been adjusted? >> it comes down to a political dispute over whether you believe the government should be helping

to raise people's incomes or not. there is no discussion. it is unanimous the tax credit is a better way of helping people raise their incomes than the minimum wage. the problem with the minimum wage, if you're going to have it, is that it has not been adjusted for inflation in a long time. right now, it is 20% below what it was in 1968 to request that seems basic to me. >> right now -- >> tax credit has kept up with inflation -- >> the minimum wage right now, justice for inflation is lower than where it was when ronald reagan was president. it has not kept up with inflation. i agree it is an income transfer. it is people who can afford the products for the employers transferring from income. five why not keep it consistent? class we made a policy decision. back in ronald reagan's time, to supplement a minimum wage because it was a much more log: -- logical way to help the poor.

when you add the income tax credit, it is kept up with inflation. you look in one pocket set of looking at both pockets. >> thank you, very much area mike, thank you very much. are thep next, how much clippers really worth? we will tell you. ♪

is readya commissioner for the team to be transferred to new hands. just exactly how much of the clippers actually worth? christi ella she, i know you have been talking with bankers. what are you telling -- what our sources telling you? >> it is really hard to value the businesses. they sound like tremendous numbers but read up on the up.en, three factors go

l.a. is a huge market, one they have to share with the lakers. clippers do, the not of the lakers do. that is one thing against them. you have to look at what other teams have gone for. what we have seen is a steady rise in valuation zero. last year, the sacramento kings go from $535 million and that was the biggest deal. then we saw the box go from 550 million, which set another record. that was, by the way, ford listed -- listed the box at the lowest trend -- franchise value in the league. this could go out the window if we get one of the crazy auctions like we saw for the l.a. dodgers where you had 10 bidders and all very competitive. maybe the same bidders. >> you might see a lot of the same exact dynamic happening. >> magic johnson has been

rumored to be looking at this. is there a mystique on the team? it is a wonderful story. someonere, especially might magic johnson were to get it, it is sort of a vindication against sterling. whoever winds up with the team has something going for them. >> the ticket prices we saw just going into the game yesterday, they tanked. 65% by the average price before the announcement and then immediately doubled. the prices for tomorrow's game seven, there hundred dollars. prices are going way up, which might actually push estimated prices for the team higher. >> somebody keep in mind it is common knowledge this team has not been invested in as much as possible. and owner could throw money behind the franchise. storyice cinderella people could get behind.

we will be back with the close of trading right after this. ♪

>> it is time for your top 10. we are counting down with number 10, columbia sportswear. spend $190 agreed to million. it will purchase the brand from seo point capital in a cash transaction for the acquisition will help columbia branch away from its reliance on winter clothing. >> number nine is panera bread, down six percent. posted first-quarter earnings that beat estimates. same-store sales plummeted to the lowest since 2009 because of

the weather. so-called. my new favorite thing, i used to hate it request number eight is general electric, little changed. 878 lead outage to purchase its energy business power plant business. a committee was named to set that he the author. it will have exclusive talks to follow if the deal is supported. siemens is also looking to support -- to potentially purchase it. >> and send holdings are down six percent. four-month low in hong kong amid a growing concern the internet-based companies are overvalued. i wonder. tech companies are the most gross and in demand for e-commerce. five point five percent. first-quarter earnings fell short of analyst estimates. posting a loss of $2.3 billion or 182 dollars a share. of $9tate repatriation

billion in overseas earnings not previously subject to u.s. taxes. ebay also announced paypal unit will begin to be advertised on tv and will have a revise and simpler logo. >> maybe they just wanted to give the money back to the government, with -- which owns all the money in the first place, as we all know. >> the company raises forecasts after the success of the lego movie. first-quarter earnings rose to 97% a share. in a conference call, time warner says fun with the recent deal with amazon will be reinvested back into the programs, programming marketing, and technology. have you seen legos? class you have two boys who would love that film. >> it is a little older. >> no. well, yes. pretty good. slightly risqué. jumpingr four, up 14%,

the most in at least 14 years, the battery maker is playing on tradedng into publicly companies. will be tax-free for shareholders and will be expected to be completed in the second half of 2016. >> you mobile is number 12, up 12%. the mobile service rallying after announcing an ongoing investigation found no evidence of fraud in its revenue. the six-month probe of the company is almost complete and the company does not expect to make changes to its previously reported earnings. >> twitter is down nine percent. the website fell to its lowest since its market debut after posting user growth that drops to a lower rate, 30% to 25% from 30%. the company noted people who use twitter timelines were up 15% and over 157 billion deals. >> we're coming up on our number one stock of the day, facebook is up two percent.

the social media giant announced offers forrove will approve developers, reducing the amount of time and effort creating apps for mobile platforms. they also announced a more streamlined experiences for users to login. sign and to anonymously. despite the rather poor economic news, you got the adp report that came a little better than xpected. economists are anticipating 200,000 jobs being created. it will get that number on friday. we are at an all-time high for the dow jones industrial average. 16,579. better than .25%. we will get additional context with julie hyman. >> there was not a lot of excitement.

we saw a tiny leg up but there in the a lot of change commentary. because thereed, is so much going on later in the week in terms of the jobs report , investors are focused a little bit forward. it also helped them to overlook to some extent the terrible gdp report that we had for the first quarter. it was much worse than estimated. speaking of people using the phrase it's all the weather's fault, we can add the fed to that list. of thes to be one reasons why members of the fed or relatively optimistic. >> it is probably fair to blame the weather. i don't really have a problem with that. >> it's ok with matt, everybody.

a kid, it used to snow every winter. and then we got used to these mild warm winters the past couple decades. i don't want to belabor the point. >> the fed basically coming out contradicting some of the economic news we had today. new all-time high for the dow. these of the stories we're tracking ahead of tomorrow's open. >> i am kicking off in the financial sector because u.s. and state prosecutors are said to be weighing criminal charges against credit suisse and bnp paribas. the target of a u.s. criminal probe since 2011 about whether it helped americans evade taxes. is underas investigation for possible sanctions violations. breaking previous practice of

reaching settlements that are critical to the financial system. becausepretty unusual there is a concern that if there are criminal charges, they are going to be really onerous on these companies. are concerns about collateral damage to other employees of the bank that weren't rectally involved with these alleged practices. >> one of 14 swiss banks under investigation. this is just the beginning. it's also funny that they go after the foreign banks. get good pr that anybody domestically getting out >> if they did enough would cause a major international incident. you could probably get your swiss bank secrecy back.

>> the swiss have been so u.s. and german tax authorities. maybe they won't if we turn them around and punch them in the face. it has a much bigger impact on that country's economy. >> they won't seriously injure these banks. these governments are just shaking out the banks as much as they can without causing real damage. i shouldn't say this but i'm sure there is someone in the government that says how much can we take from them before we seriously hurt share owners. >> it's too big to jail. no one is going to jail. can go see how far they with these prosecutions before shuttering the business. >> how much can we shake out of this company?

>> the fines measured in accordance with what they did as or as breaking the law hurting the rights of americans. how much can you get from jpmorgan or bank of america a echo as much as they will give the beginning of the synergy we have been waiting for together. >> i love this story. is best fornote everyone involved. have you created a slice of pizza while watching your favorite show on hulu, why are you watching hulu? there is netflix. there is a reason now to watch hulu. you will be able to get pizza in the app. in stream purchase units which will allow you to buy stuff without leaving the hulu app. the most important stuff you can buy being pizza. pizza hut is one of the

companies that will have a deal with them. while you're watching a tv show on hulu which you can watch free and full content on your mobile device, you will be able to order a whole pie and they will deliver it to your house. if they make this truly easy, i will cancel my five-year-old subscription to netflix. i will add hulu subscription to my house. 48 million netflix customers only 6 million hulu customers. the actual impact is you can watch a lot of the shows on mobile in tablet. the pizza thing is ridiculous kiss people are sitting there with a phone watching tv anyway. it's pizza but tomorrow it will be your jacket or my green dress. they capture part of that revenue. >> it requires a huge amount of

integration. people can be watching street smart and just double-click on it. i would say, eric, why do you want her dress? he can do whatever he likes at home. it's the 90's. i close doors. >> if you watch reality show, you can go to a particular website that tracks their clothing and find it. and they're owned by abc, foxx, nbc. there is an opportunity to sell things that help their networks. >> what channel does the kardashians run on? e!that is the enough work -- network. >> we have earnings. when you probably should've said i shouldn't say this right now. the company reported a smaller

loss than had been estimated by analysts. it looks like revenue is coming out ahead of what analysts are estimating and raising the forecast for full-year earnings. about the strides it made in the quarter in addition to partnering with other companies like yahoo! local search and trying to show and thearch results. company is talking about year-over-year revenue growth. that is where the guidance raises come from yelp. the sector looks like it's down in the after hours so we will continue to see what is going on. >> another food story i have for you today. meatbell says 88% of the in its beef talk goes is actually beef. out, a sigh of relief, almost all of the beef it sells

he was beef. and contrary to popular belief, it is not grade d beef. i didn't even know it went that low. earlier,had pizza hut they are really dominating. >> they do dominate fast food news. >> national honesty day. it is a great day for them to say honestly what is in our tacos. if you look at the ingredients, a lot of these things are not good for you. double types of sugars, cornstarch, all the things people are allergic to. food,ry type of fast anything. wrecks are you telling me when these? i don't believe that. >> if you buy a mcdonald's hamburger, do you think it's 100%? >> but it is one of the worst hamburgers you can buy. get a good one like five guys.

these add-insll for texture and color as well. >> they specialize in chemicals that will make it taste and smell a certain way. 35 million people go to taco bell every week. difference between five guys burgers and mcdonald's burgers. >> we should test the beef patties. >> i will do that. >> i don't mean in your mouth. next, seeking a new role or new hotel pretty much every week this year. we will have some answers on air b&b. later on, titans of wall street are putting a big-box in support of charter schools and one supporter might run for president.

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>> in the first quarter this year, the hotel chain has added 32 new properties and nearly 6000 rooms to its global portfolio. andoke with the president ceo about future international and the rest of growth goals and starting with the new marky opening tomorrow in the nation's capital. >> we take our first guest tomorrow, may 1. 11 75 rooms, right next to the d.c. convention center. we're really thrilled that we are getting to the opening day. this, hundredse of millions of dollars and years worth of construction that it has probably been 10 years since we stirred working on this with the city and with our partners. >> int took so long echo a city like this next to a convention center, you have political issues that need to be resolved and all the normal issues like financing, design,

construction. projects like this take a long time to become a reality. >> other projects in the pipeline, you have been doing a lot of international expansion. what markets are you most focused on right now? >> i have been in both europe and asia the last two weeks. i got back from japan yesterday. spent the week in asia, china, japan. both of those markets are doing well. on thein the u.s. business channels we tend to focus on chinese gdp growing more slowly than in the past but if you look at the travel business, we see a government focused on driving consumer behavior, including outbound travel. the statistic i thought was most impressive last week am a one of the vice premiers came and spoke with us. there wereast year, 98 million outbound chinese in other words, leaving

to travel abroad. the government has set a target of 500 million annual trips. that is the idea, to get them to your reward system program so they become loyal to marriott. >> no us and china so when they travel abroad they come and stay with us. every right-thinking government in the world should be focused on the export potential associated with the traveling chinese. >> air b&b. are you concerned about that taking some of your potential market share? are obviously watching air b&b. a fabulous story and are growing very quickly. talked with leadership and folks in the marketplace and listening to a lot of young people. moment, it looks

reasonably clear that there is not a significant overlap between their customer and hours. the business is co-occupied. folks stay in an apartment or house where the host is also staying at the same time. it's not a business that we're in. i think rates are meaningfully different. >> who would you say is your core customer? >> our core customer is a business traveler and vacationers and group customers. brand, 40% of the business is group business. there is obviously no application in air b&b or something like that. most of our customers are looking for a room that they are staying in alone. they are not necessarily sharing with someone else. when we look at air b&b, one piece of what is driving folks to it is it is cheaper.

one of the attributes of that is you end up sharing a place with somebody else. it is a very different proposition than what we do. >> what are you seeing on the conference front? are people booking in advance? >> group bookings are building steadily. on the books is up about five percent from the same time last year. that is overwhelmingly driven by volume. corporate business is strongest. the bookings are coming in stronger every quarter. typically what we see coming out of weak economic environment is traveler,idual transient business comes back first and strongest and the group tends to be a little bit of a lag in the cycle but we see it come back exactly the same way we have seen in prior recessions. my thanks to ceo of marriott

international. students enrolled in charter and public schools are 11% more likely to graduate versus students in district run schools. these kind of stats have the attention of wall street.

>> when it comes to charter schools, wall street is bullish. it focuses on establishing charter schools in new york city.

from washington, to discuss, we have in this teacher sean macomb . named the national teacher of the year, he will be honored by the white house had a president obama. p gala, it was a pretty significant amount. >> 7.7 5 million is probably three or four times what a typical gala in new york would raise. it shows the commitment that spread throughout the industry. how are charter schools really making a difference? >> my sister teaches at a charter school and diaphragm to teach at a charter school. when you see a comparison, you're looking at a really false comparison between public schools that accept all children

whether they are english-language learners or special education and charter schools that have a selection process or can more easily pick out students who are not succeeding and they don't want to have in their schools. money was raised. why does wall street feel so passionately about this? every guest is spoke to talked about visiting a school and that being the gateway into their involvement. i think what they see as an environment that is an positive learning environment. they know the challenges that these kids face. showing that reading levels are 90% are not at their grade reading level. to see students talking about wanting to go to columbia or harvard when they are in seventh grade is really inspiring and shows there is a turnaround

taking place that they want to get behind. education,n, in there is more concerned with the teachers union then there is with teaching the kids. and that has been a real danger and a real threat and you don't have those unions when it comes to the charter environment. there seems to be more of a commitment among the faculty to make sure these kids are getting an education. >> they emphasize their own training program for their teachers. say ittensive, and they equips the teachers to deal with the dramatic way that these kids are behind. >> i did a story a few years ago that dealt with some of the schools in new york city. public schools that had kids in ninth and 10th grade they could not read.

it speaks to the problem. the charter has been seen as the bright spot. >> it can really help raise expectations. we can make sure that they have a wonderful education. >> look at all this money that people on wall street can raise and the teaching experience will be better and public school students will lose out. there is a real sense of

advocacy that what they are doing is setting a standard. thank you very much mama amanda. we will be back with more street smart after this.

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>> from the office to ugly betty, ben silverman who produced some of tvs biggest hits is developing shows deferred digital's fast-growing players including amazon studios. erlichman andn started by sharing an update on some of the relationships with one of hollywood's big talent managers. >> we are expanding the thetionship with one of best management companies in hollywood. they represent everyone from will arnett to whoopi goldberg to john malkovich and we build a digital one with them.

including yahoo! where we have done a number of shows featuring different talent. we are doing a show with judy greer. we have done a show let's talk about love. and we did a really funny sketch comedy show for ya ho with talent as well. i think it is that continuing tolution of having access the best storytellers and most creative talents in hollywood and plugging them into these new worlds of distribution and access to consumers. >> you've been thinking about digital content before it was cool. and you started your career at william morris. had a these people come together in terms of this partnership? there are still some big picture issues like will you get paid if you're doing something for digital versus traditional tv. >> the way the business models are evolving, requiring a lot of

different minds. including the guilds and labor unions. stakes at play and that with how they have their talent compensated down the pipe is different companies are exploiting rights, digitally. the element in our ecosystem is a content is driven by great stories and great emotion. a billionaren't people that tell those stories really well. it's a small number of people. finding a way to connect that talent to the right platform is something that requires a new skill set. navigation, deal structures, and opportunity were the talent can do what it wants to do most witches have the story where culture is created. a show we're watching for later this year. there is another big player in town these days.

amazon studios. you guys have been working with them. we did a pilot in the kids space at amazon and developing a really fun drama about casanova with amazon right now. writers whoerful will be one of the producers on the americans. studio, the, the -- they have been really leaning in and hired a smart executive. i worked with them at ugly betty and it has been a great process and we are in the scriptwriting phase right now but i am looking forward to hopefully getting that to production. the straight to series model that we participate in with the arco polo show, that screenwriting stuff as opposed

to going into the development steps where some of the other outlets are going is a big differentiator in why a lot of people are leaning in the netflix. because they are committing right away to a series versus having to go through a pilot process. >> in terms of what people want to watch, you are looking overseas, you are overseas and buying great shows and brought them to the united states. the office, ugly betty. but you're noticing a huge audience in our backyard which is creating a lot of opportunity for you. >> big time. another sector of our american audience is doubling in size and growing exponentially is the u.s. hispanic that taps into a global opportunity for a different kind of story and i am spending a lot of time scouring these latin american markets for

great ideas and formats. and just like ugly betty that i found from columbia, we are in production on a series for the cw in conjunction with cbs that we brought in one of the biggest soap stars in mexico to star. big fanre seeing is a of its own culture but also a big fan of american culture. if there is a way you can connect the dots and create something truly entertaining that can be both for a gentleman -- general market and true the hispanic market, there is an amazing amount of warmth and audience that they embrace from that market. with the youtube experiment as well, we did a big partnership with sofia vergara surrounding our youtube channel that google

initially funded through its previous channels that we continue to expand and procter & gamble is involved as well. >> john is joining me with more and you are literally everywhere. you are in l.a., the facebook event in san francisco, our producers like ben silverman in tending to see their programs on a platform like facebook? facebook brings its partners, one of the earliest partners was netflix. reed hastings and mark zuckerberg are very tight and they have seen themselves as being displaced or you can talk about shows, learn about shows, share information with your friends. app developerse here work on things like movies or tv type content that people will discover on facebook. facebook itself getting into the movie or tv business, i

don't know that that's going to happen or if they will sort of put out signs that says facebook studios open for business. they want to be the place that shares all of this stuff. everybody directly or indirectly is in the business of getting eyeballs and seeing all this digital content. >> thank you so much, jon erlichman joining us from san francisco and thanks for the interview. restaurant owner extraordinaire, i will be joined by stephen start to talk about his latest new york city venture and donald sterling with a $2.5 million fine from the nba and that is not the most expensive penalty ever. more on that. ♪

>> target has turned to an insider to take over i.t. security after a data breach compromised tens of millions of credit card customers. it is a big job and his hiring indicates a shift in strategy for target. , in many ways, they felt violated. veryhing that we all guard carefully. our personal financial information was taken and stolen effectively a target. be enough to to change that and prevent it from happening again? having the right man with the right background in charge. the target ceo thinks that is absolutely the number one objective, to earn back people's trust. seen this hit target when it comes to stock price and profit.

is going to be in charge of the long-term strategy of cyber security and that will be his number one mission. guy? is the big question. perspective, he has a couple of interesting things. working withrience the government. he was an advisor for homeland security working for the department of justice. he has a lot of background when it comes to things like data notification. he also has tremendous experience in the private sector working for big-box retailers like home depot or working for delta, working in credit cards. changes are going to be a huge focus for target going forward. that is a very clear part of what his role is going to be there. also interesting to point out , he lookedo strategy

outside the company to make this higher. a 30 year veteran at target, you take a look at a lot of the executives that of been there for 20 years and a very insular company. it's very clear they needed outside help. that's why they brought him in. actuallys the company changing on payment processing atco >> a big personnel announcement yesterday, but also a big payment announcement as well. a partnership with mastercard that they will be moving more quickly and aggressively when it comes to the transition between baghdad extracts and chip and pin technology. that isssional hearing, what we heard from the target cfo over and over as the solution. moving to new technology. will move all their registers to that chip and pin technology. that will be september and then they will release the target red in 2015 and it will all

the chip and pin. >> they've got to do something to win back that trust. a lifetime ban from the nba for clippers owner donald sterling and a $2.5 million fine. turns out that fine is not the biggest penalty ever. sex of theook at most expensive fines in the nba history.

♪ >> i am also finding mr.

theling $2.5 million, maximum amount allowed under the nba constitution. >> and we will have more street smart next. ♪

>> my next guest is the it die of the new york city food scene, named restauranteur the year by bon appétit anza got. to the three restaurants on the east coast and the empire keeps growing. he is opening another restaurant here in downtown. starr, me is stephen

owner of the star restaurant organization. the newart with restaurant you just opened in downtown manhattan. >> it opened last friday in battery park. andad one in philadelphia it was a huge hit there. i can speak from experience, they don't have a ton of restaurants. >> battery park is an underserved area and one of the compelling reasons to go there. there's nothing to do so why not open a restaurant. >> 33 restaurants from over the country. you seeing spending on the consumers part? demographic or market. >> new york city is booming. miami is also on fire right now. and the city that is really surprising me is washington. d.c. is incredible. the polar spending money, they

are hungry. it's almost on the same level as new york city. >> how do you create that buzzer that vibe. people are looking for what snoop. does it put pressure on you to be opening new places? >> i was in the music business, so it's like putting out a new album. i was a concert promoter for big shows. the next album you have to have hits, a compelling reason why they are going to buy that album. it has to be new and it has to be different each time. lot about the weather. economic data has not looked great. what do you see that's tied to the weather? >> god has been bad for business. >> explain the weather. we have hope that the sun will shine.

>> we just saw the top 100 list of restaurants. new york only had about four out of the top 100. are we losing our edge in terms of being the world's best destination for cuisine echo >> i still think u.s. is the best -- new york is the best restaurant city of the world. but rent is so high that it is difficult for restauranteur is. they are starting in other cities. >> i look forward to trying a new restaurant downtown. that's it for street smart today. i will see you right back here omorrow at 3:00 p.m. have a good night, everyone. ♪

>> we're approaching 56 past the hour so bloomberg is on the markets. take a look at how stocks closed on this federal reserve announcement day, the dow closing at a record 16,580. the s&p ending higher by about .33%. the fed really holding steady in its statements but nonetheless a little more optimistic about the economy and it seemed to at least not take any of the air out of the market today. a little bit of a leg up after the fed statement came out. and tony dwyer, u.s. portfolio talked generally

about investing and told betty liu that we are in a no man's land when it comes to this correction we have seen. but no matter what, he says you should be buying equities. really want to be an aggressive buyer when it feels wrong. in the percentage of stocks above their various moving averages is much lower than we are now. we have the russell 2000 and some of these highflying social media stocks. that is not enough. >> we are no man's land as opposed to -- in which we are going to be up buyer or aggressive buyer? >> i don't think it will matter. he target is up 17% and the s&p target is 2185. >> not everyone agrees that you should be buying stocks no matter what. is timecampus says it to stay out of the stock market.

>> celebrate and go away. look at the evidence. trying to find an average for the s&p 500. on may 1, if you buy back on september 1, your 1.8% ahead of the game. this really is just an old adage that comes out of the stock trader's almanac. you get your gains in the fourth quarter. over at strategic research, he says there are winners and losers. what is curious is that health care -- this goes to 1989. he looked at different sectors , theound that health care

best performing group as opposed to materials down about three percent. consumer stocks down about 1.8%. you don't necessarily need to sell everything, but consolidate and focus on the winners. those of the winners since 1989. if you want to stay with health care, your best performer, there it is. the health care etf. you can see the trend line is very consistent and held the whole time even on the selloff we saw last month. of care still stayed above trend. there you go. at what take a look happened in the bond market as a result of the statement. people bought treasuries and the fed reiterating it is likely to keep the benchmark interest rate close to zero for a considerable time even after it ended bond purchase program. the 10-year note ending today about 2.6 five percent.

still trading at a pretty tight range as it has been the last several months. i'm julie hyman. ♪

>> this is "taking stock" for april 30, 2014. i'm pimm fox. oprah winfrey thinks that the clippers may suit her just one day after donald sterling is banned from the mba. oprah winfrey says she is in discussions to make a joint bid for the term. plus, meet the man who has designed suits for frank sinatra, clint eastwood, and ringo starr.